Saf-T-Hammer Corp. is not only bringing the firearms giant Smith & Wesson name back to the U.S. with today's purchase of the firm, but also to Arizona -- a state once synonymous with guns and shootouts.

Scottsdale-based Saf-T-Hammer said it will be incorporating its safety features in Smith & Wesson fireams, including the .357 Magnum and .44 Magnum made famous by Clint Eastwood.

As part of its acquisition of the firearms company, Saf-T-Hammer will be changing its name to the Smith & Wesson Holding Corp., according to Saf-T-Hammer chairman Mitchell Saltz.

Arizona will benefit from its 147-year old name, one of the most recognizable in the world, according to Saltz.

The name change will occur after the company receives shareholder approval, which is expected in the next few months, Saltz said.

Under the agreement, Saf-T-Hammer will pay $15 million in cash, with $5 million paid upon closing and the balance due in May 2002.

Smith & Wesson's total assets are approximately $97 million, which includes two manufacturing facilities.

Total liabilities are approximately $53 million, which includes a 10-year note payable to Tomkins for $30 million due in May 2011.

Saltz said that Saf-T-Hammer, a 3-year-old company which specializes in safety and security devices for firearms, will be adding personnel in the legal, marketing and sales and acquisition areas since Scottsdale will be the center for West Coast operations.

He said it is premature to say how many employees they will be adding.

He also indicated that some or all of Smith & Wesson's Massachusetts could eventually be moved to Arizona. The company has a 660,000 square-foot facility in Springfield, Mass.

"We've been running scenarios about that possibility at a future date, but certainly not within the next year or two," he said.

Long range plans for the company, purchased from Great Britain's Tompkins Plc, include expanding the branding activities and pursuing more acquisitions.

One reason why the acquisition went through is that Saf-T-Hammer's president, Bob Scott, formerly was vice president of business development at Smith & Wesson, according to Saltz.

Saltz also credited a local team, brought together by investment firm Hunter Wise Financial, for helping move along the deal from start to completion in approximately four months.

That team included Hunter Wise investment bankers, Bank of the Southwest in Tempe, lawyers from Gammage & Burnham PLC and the local branch of Marsh USA Inc., handling the insurance.

"It took quite a big of creativity and due diligence to pull it off," said Gary Pryor, managing director at Hunter Wise, which happens to be in the same building as Saf-T-Hammer. He said that they were able to save time since all the advisors could meet regularly face-to-face at Saf-T-Hammer's offices.

"We were all in the same room, writing on white boards and directing people by handling them notes while they were on the phone," said Pryor, who took the lead in the project.

"It's like that expression, 'you have to go nose-to-nose to close,'" he added.

Saltz noted that while Smith & Wesson is best known for its firearms, it also is involved with a wide range of products from bicycles and handcuffs to golf clubs.

"We're going to more actively promote the company's specialty services," he said.

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